US Taxation of Canada Pension Plan benefits

US Citizen and resident is receiving retirement benefits from Canada Pension
Plan. Is this taxed like SS benefits? If so, how do you enter it, by
adding it to SS income on the SSA 1099? My inclination is to treat it like
a 1099R or perhaps just misc. income on line 21. Comments?

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Advertisements

Frank S. Duke, Jr. wrote:
> US Citizen and resident is receiving retirement benefits from Canada Pension
> Plan. Is this taxed like SS benefits? If so, how do you enter it, by
> adding it to SS income on the SSA 1099? My inclination is to treat it like
> a 1099R or perhaps just misc. income on line 21. Comments?
>
> If this was from the UK, would it be different?
>
> All freely provided advice guarantee correct or double your money back
>
> Frank S. Duke, Jr. CPA
> Cincinnati, OH USA
>
The answer is right on page 2 of Pub 597 on the treaty. Treat it
as if it was US Social Security income just like it appears in
Box 5 of a US SSA-1099.

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Advertisements

Guest

On Feb 22, 9:05 am, "Frank S. Duke, Jr." <> wrote:
> US Citizen and resident is receiving retirement benefits from Canada Pension
> Plan. Is this taxed like SS benefits? If so, how do you enter it, by
> adding it to SS income on the SSA 1099? My inclination is to treat it like
> a 1099R or perhaps just misc. income on line 21. Comments?
>
> If this was from the UK, would it be different?

Look at article 8. I'm guessing that unless the pension is Canada's
version of social security, you would use lines 16a and 16b. Is
Canada withholding taxes on the pension payments, or is the taxpayer
required to pay taxes to Canada?

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Guest

On Feb 22, 12:05 pm, "Frank S. Duke, Jr." <> wrote:
>
> If this was from the UK, would it be different?
>
> All freely provided advice guarantee correct or double your money back
>
> Frank S. Duke, Jr. CPA
> Cincinnati, OH USA
>
> --
Frank - Yes if it was from the UK it would go on line 21 and
identified as such. The US/UK treaty is different. The canadian/US
treaty in 1998 made it so they could treat this as US SSA and combine
it in the same line 20a with the proper conversion rates applied.

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Guest

On Feb 22, 4:40 pm, "" <removeps-
> wrote:
> On Feb 22, 9:05 am, "Frank S. Duke, Jr." <> wrote:
>
> > US Citizen and resident is receiving retirement benefits from Canada Pension
> > Plan. Is this taxed like SS benefits? If so, how do you enter it, by
> > adding it to SS income on the SSA 1099? My inclination is to treat it like
> > a 1099R or perhaps just misc. income on line 21. Comments?
>
> > If this was from the UK, would it be different?
>
> No idea, but the Canada treaty is at
>
> http://www.irs.gov/businesses/international/article/0,,id=169503,00.html
>
> Look at article 8. I'm guessing that unless the pension is Canada's
> version of social security, you would use lines 16a and 16b. Is
> Canada withholding taxes on the pension payments, or is the taxpayer
> required to pay taxes to Canada?

The treaty states that it will be taxed in the country of residence.

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Share This Page

Welcome to Accountant Forums!

Welcome to the Accountant Forums, full of expert advice for accounting related topics.

Please join our friendly community by clicking the button below - it only takes a few seconds and is totally free. You'll be able to ask questions about accountancy, tax and audit or chat with the community and help others.
Sign up now!